Ilie IUIUWING IN HUMILIull appies I e queSUUNS Uisplayeu Deluw.] Quinlan-Cohen, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31): a. Did not accrue $1,800 owed to the company by another company renting part of the building as a storage facility. b. Did not record $14,800 depreciation on the equipment costing $107,000. C. Failed to adjust the Unearned Fee Revenue account to reflect that $1,000 was earned by the end of the year. d. Recorded a full year of accrued interest expense on a $22,800, 8 percent note payable that has been outstanding only since November 1. e. Failed to adjust Prepaid Insurance to reflect that $700 of insurance coverage had been used. 2. Using the following headings, indicate the effect of each error and the amount of the effect (that is, the difference between the entry that was or was not made and the entry that should have been made). Use O if the effect overstates the item, U if the effect understates the item. (Reminder: Assets = Liabilities + Stockholders' Equity; Revenues - Expenses = Net Income, and Net Income accounts are closed to Retained Earnings, a part of Stockholders' Equity.) (Select "NE" for no effect.) Transaction Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Revenues Expenses Net Income Effect Amount Effect Amount Effect Amount Effect Amount Effect Amount Effect Amount 1,800 NE I 1,800U 1,800 NE u 1,800 14,800 14,800 14,800 o 14,800 1,000U 1,000 U 1,000 1,000 3040 304 3040 304 700 7000 700 700